Loans

So basically, refinancing a personal loan can be a smart way to pay off the current debt with a lower and more favorable interest rate. While we usually associate refinancing with bigger loans like home or education loans, it’s important to understand that one also has the ability to refinance a personal loan to improve their repayment terms or manage their loan account.

Yes, you heard it right. And today, we’ll be talking about the same. We’ll gain more valuable insights about refinancing and how one can refinance a personal loan. So let’s get started.

What is refinancing?

Refinancing in lending means getting a new loan to pay off the loan one already has. The main reason people choose to refinance is to take advantage of lower interest rates and manage or pay loan emi.

Let’s say a borrower has a personal loan with an interest rate of 13% per year. But then, a borrower finds another lender who is offering the same type of loan with an interest rate of 11% per year. In this case, borrowers can save a remarkable amount of money when they repay the debt because they will be paying a lower interest rate.

To put it simply, refinancing is like replacing their old loan with a new one that has better terms, especially a lower interest rate. It can help you save money and make your debt easier to manage.

Important steps to refinance personal loan.

Here are a few steps to help you refinance your personal loan:

1. Review the current loan: Begin by understanding the terms and interest rate of your current personal loan. It will give you a benchmark to compare against when seeking a new loan.

2. Check your credit score: Lenders typically consider borrowers’ credit scores when evaluating loan ac through your loan applications. And a higher score indicates that there is more chance of qualifying for lower interest rates. So, review your credit report and take steps to improve your credit score if necessary.

3. Research lenders and gather required documentation: Look for lenders that offer personal loan refinancing with great interest rates and repayment terms, and also look for any fees involved. After that, gather all the required documents like identification proof, income statements, bank statements, and details about a current loan. This process can be made more convenient with the assistance of personal loan apps India, which provide a user-friendly platform for exploring your refinancing options.

4. Apply for refinancing: Submit the application with the selected lender. Kindly provide accurate information and ensure you complete all required fields. Don’t forget to double-check the application before submitting it to avoid any mistakes or omissions.

5. Review the new loan offer: Once the application is processed, carefully review the loan offer provided by the lender. Pay close attention to the interest rate, repayment period, monthly installments, and any fees.

6. Accept the refinancing offer: If a borrower is satisfied with the new loan terms, they accept the refinancing offer. They may be required to sign an agreement or electrically confirm their acceptance.

Once the refinancing is approved, the new lender will use the funds to pay off the current lon. So, confirm that the old loan is fully settled and closed. From this point forward, borrowers will make repayments to the new lender as per the agreed-upon terms.

Related insights:

Making timely repayments on loans should be a top priority, as consistent payments not only ensure your financial stability but also contribute to building a positive credit history. This is especially crucial when utilizing a travel loan app, where favorable credit scores can lead to better loan terms and more affordable options for your next adventure.

Securing a loan can often feel overwhelming due to the complex process involved. Borrowers usually have questions, concerns, and a genuine desire for clarity and guidance as they navigate the loan application process.

When it comes to loans, using an answering service can make a significant difference. It offers borrowers the necessary support and helps to streamline the lending process.

Streamlining Loan Applications

Applying for a loan can be complex, involving a significant amount of paperwork and various procedural steps. Borrowers frequently need help to navigate through the process smoothly.

An answering service can serve as a dedicated support line, offering borrowers real-time assistance. They can answer questions regarding loan types, requirements, and documentation and guide the application process.

Immediate Responses to Loan Queries

Incorporating an answering service in the loan sector offers a significant advantage: the ability to respond to borrower inquiries promptly.

Borrowers can quickly obtain the information they need from the lending institution, whether it is during business hours or after. This fosters a sense of trust and reliability.

Personalized Loan Consultations

Borrowers value a personalized approach when making financial decisions. An answering service can provide customized consultations, guaranteeing borrowers receive information relevant to their loan requirements. The borrower experience can be significantly enhanced through this level of personalization, leading to increased customer satisfaction.

24/7 Accessibility

Financial needs do not always follow a rigid schedule. Borrowers may have questions or need assistance outside of the usual business hours. A lending institution becomes a reliable partner by providing an answering service that operates 24/7, ensuring borrowers can access information and support whenever needed.

Efficient Document Submission

Submitting documents is a crucial aspect of the loan application process. An answering service can help borrowers by assisting them in raising the necessary documents and ensuring that their application is complete and in order. This not only speeds up the process but also decreases the chances of errors or missing information.

Improving Efficiency in Loan Approval Processes

Timeliness is crucial in the world of loans, and an answering service can significantly reduce approval times. An answering service can help speed up the loan processing and approval process by promptly addressing borrower queries, assisting with documentation, and facilitating communication between borrowers and loan officers.

Improving Borrower Satisfaction

In the highly competitive loan industry, ensuring borrower satisfaction is paramount. An answering service can be a valuable extension of your lending institution’s dedication to providing excellent customer service. Satisfied borrowers are more inclined to recommend your services to others and have the potential to become loyal, long-term customers.

Conclusion

When it comes to loans, customer service and support are paramount. A customized answering service can be a valuable resource for individuals seeking financial assistance, as it is tailored to meet the unique needs of borrowers.

An answering service contributes to enhanced borrower experiences and increased satisfaction by streamlining the loan application process, offering personalized consultations, and ensuring 24/7 accessibility.

In an industry where trust and efficiency are crucial, integrating an answering service can be a smart choice that benefits both borrowers and lending institutions.

Everyone who obtains a personal loan is aware that it must be repaid in full with a fixed EMI. But regrettably, people encounter difficult financial circumstances that compel them to default on their loan obligations. A medical emergency, job loss, an urgent trip, etc., are a few situations that result in late EMI payments. It is preferable to let the lender of your fast personal loan know when you are in this circumstance and unable to make payments. Most lenders will provide assistance and guidance with suitable choices to get your loan payment back on track.

However, if the lender has set repayment terms and does not provide the essential assistance, you can experience the consequences listed below.

Things that you might have to face depending on your lender.

EMIs are a more suitable loan repayment alternative than lump-sum payments. However, your obligations increase if you fail to make an EMI payment, even if you borrowed from a quick loan app. You might be required to pay the full amount and any late payment fees within the tenure’s remaining days. Your financial burden will consequently grow.

• Banks or other loan institutes like easy loan app notify credit bureaus of EMI defaults. If you have passed the overdue payments before a predetermined number of days, there won’t be a problem. Otherwise, the lender will inform the credit reporting agencies that your credit rating has been written off. Since it could make the credit report appear negative, it will be difficult for you to obtain new loans.

• The lender may use the co-signer or guarantor to collect any missed payments on the personal loan. To collect their personal loan amount directly, the lender may phone them as a reminder.

• Your credit score is somewhat impacted because lenders record late loan payments to Indian credit bureaus like CIBIL and Equifax. A low credit score may make it more difficult for you to obtain a same day loan or other future loans or credit.

• Lenders may file a lawsuit if you don’t make your EMI payments for over 180 days. The lender can file against you to recoup their investment. If you admit you are a wilful defaulter, the lender may also bring criminal proceedings against you. After the Insolvency and Bankruptcy Code was passed in 2016, lenders could file lawsuits against borrowers who defaulted on their loans. It was clear that even borrowers were better protected against legal action. The RBI increased rules, which also made it harder to obtain personal loans.

• On late or missed payments for personal loans, the lender may impose a penalty or additional fees. When you miss an EMI payment, penalties that may total 2% or more of the missed payment are assessed.

• If you don’t pay your EMIs on time or default on your loan, the lender, like Kopa pesa loan app, may charge you a high interest rate since they may view you as a financial risk.

• Although a personal loan is insecure, the lender may request collateral in some circumstances, such as when you cannot repay the loan or have consistently missed EMI payments.

Conclusion

If you are having trouble paying back the loan, let the lender know immediately because they might be able to provide solutions like restructuring or forbearance. In the end, paying your debts on time and keeping lines of communication open are crucial to avoiding the bad effects of defaulting on a personal loan.

Access to quick and accessible financial solutions becomes critical when dealing with emergencies and unforeseen bills. It is where fast online loans come into play. Borrowing money has gotten more immediate and more easily accessible than before, thanks to the emergence of digital lending and the advancement of technology.

Recognizing the need for rapid disbursement, instant loans have welcomed the creation of many instant loan applications. Unlike the old personal loan process, which was tedious and entailed substantial documentation, these apps allow borrowers to obtain cash instantly in their bank accounts. This simplified technique has acquired significant appeal, allowing debtors to receive quick financial aid when required.

Let’s look at how this groundbreaking technology is revolutionizing the lending industry.

• Many online personal loans are available to different applicants, including salaried workers, independent experts, and even those with poor credit histories. These rapid loan providers assess the borrower’s repayment capability based on various characteristics such as financial security and credit history, and borrowers can select a payback duration spanning multiple time frames at low-interest rates. Because of their greater flexibility and accessibility, fast loans are now a feasible alternative for a larger demographic.

• Digital lending platforms prioritize borrower information security and privacy. They use powerful encryption technologies and safe data storage systems to safeguard the confidentiality of financial and personal details. Furthermore, most of them have been certified by the Reserve bank of india and follow strong data privacy standards, giving borrowers peace of mind when submitting critical information online.

• Conventional loans applications were sometimes time-consuming and required substantial documentation, lengthy wait periods, and repeated trips to physical locations. Thanks to advancements in lending technology, borrowers may now apply for loans online from wherever they are. Automated systems evaluate loan eligibility and make rapid judgments, lowering wait times and increasing efficiency.

• Lending technology enables personalized online personal loan packages that meet the customers’ specific demands. Borrowers may select loan conditions that best fit their financial situation, from flexible repayment choices to personalized interest rates. This personalization increases lending experiences and boosts overall consumer happiness.

• Many lenders provide low rates, contrary to popular belief that instant loans online have outrageous interest rates. But with the growing competition in the lending industry, borrowers in this industry may examine numerous platforms and choose the one with the best interest rates and payback conditions.

How does the online instant loan industry learn from traditional banks?

Instant online loans providers are integrating traditional banking services with innovative online lending systems to make our lives more simple and productive. These companies are growing rapidly in today’s market, making the loan approval procedure faster and easier. Online loan providers have discovered a way for people to earn income by lending money through novel methods like peer-to-peer lending. As a result, they now have more influence than traditional banks.

Conclusion

Without question, the emergence of instant loans in recent years has altered the borrowing scene. Borrowers can now expect increased security, better credit-building chances, and a more simplified borrowing procedure as we grow in the digital arena. Instant loans online are prepared to continue providing individuals and organizations with the financial flexibility required to overcome unanticipated budget constraints and grab opportunities due to these improvements.

Medical emergencies can befall anytime. In such situations, the individual does not have any time to waste. Now, it is important to be covered under insurance; however, do note that even insurance policies have certain limitations. If the insurance policy does not cover the current health complication that an individual or their family member is facing, they can always choose to apply for a medical emergency loan to arrange for the required funds.

A lot of financial institutions offer medical loans with simple application procedures so that applicants can easily arrange for the funds in case of a medical emergency. If you are hearing about medical loans for the first time, here’s what you need to know:

Benefits of taking a medical loan

1. You do not need to provide collateral

This type of a personal loan for a medical emergency is unsecured. It means that borrowers do not need to pledge any collateral to the lender while applying for this loan. This not just makes it easy for the borrower but also helps them complete the loan process sooner since they do not have to provide any documents for collateral.

2. You can arrange for the funds immediately

While facing a medical emergency, an individual would not have time to visit a bank, wait in a long queue, fill up and submit several documents, and then finally wait for the verification process to get done. With a personal loan for medical emergencies, lenders understand the borrower’s urgency, which is why the procedures of applying for this loan are simple and hassle free. You can get swift approval from a lender when it comes to a medical loan and have the loan amount disbursed quickly.

3. You can use the medical loan to cover additional expenses

Insurance policies do not cover all kinds of treatments, and this is where a medical loan can be helpful. With the loan amount, you can get financial assistance for medical procedures such as dental surgeries, chemotherapy, or any other expenses not covered by your insurance policy.

Documents required for a medical loan

There are certain documents that you will need to submit to the lender, which are as follows:

1. Proof of identity

• Driver’s license
• Passport
• PAN

2. Proof of residence

• Ration card
• Voter ID
• Passport
• Utility bills
• Driver’s license

3. Proof of income

• Salary slips
• Recently acknowledged income tax return (for self-employed borrowers)

Eligibility criteria that lenders set for medical loans

Applicants should:

• Be citizens of India
• Be in the age bracket of 21-60 years
• Have been working for at least a year
• Be earning a monthly income of at least Rs 25,000
• Have completed graduation

If you are worried about your medical bills, keep in mind that financial institutions offer medical loan that range from Rs 50,000 to Rs 25 lakh. This can help in covering the expenses you are facing, after which you can repay the loan thanks to the flexible repayment tenures that lenders offer.

Personal loans are one of the most popular financing tools that you can consider to fulfil your funding needs. Be it buying a high-end gadget or splurging on your wedding, financing your dream trip, or paying your medical bills, a personal loan comes in handy. They are unsecured loans that can be availed with simple documentation and easy processing. However, the only thing that keeps many people from availing a personal loan is its interest rate. Because personal loans are unsecured loans the interest rates on such loans may be a bit higher.

The interest rate is one of the most crucial parameters that you need to consider as a borrower while applying for a loan. The higher the interest rate, the higher will be your EMI burden and the more will be your payback. This can make your entire experience very expensive. Thankfully, there are a few pro tips that can help you get the best interest rates.

4 Pro Tips to Get the Best Interest Rates on Personal Loans

Here are four pro tips for you to get the best interest rate on the loan.

1. Adjust your loan amount or duration: This is one of the simplest ways to get the best interest rates on a personal loan. Many lenders have a compartmentalised interest system where interest is generally based upon the bracket in which the loan amount is placed. See, when a company lends you money, they consider various aspects of the deal. If you are looking to borrow a higher amount and you opt for a longer loan tenure, the loan provider will lend you the loan at an increased interest rate. This is because when you increase the time or money, the risk associated with your loan account also increases. To compensate for this risk, the provider increases its interest rate. If you think you are being charged too much interest rate, you can consider applying for a lesser loan amount or you can lessen the loan tenure. This will place you in a lower bracket which will make it possible for you to get the loan at a lower interest rate. Some companies do disclose the interest rate brackets beforehand but if your lender does not, you may have to enquire about this specifically.
2. Maintain a high credit score: A good credit profile is the single most sure-shot way to ensure that you get the best possible interest rates. When you apply for a personal loan or any other loan, the lender carries a background check with a credit bureau. There are multiple credit bureaus that keep a tab on your borrowing history. The number of times you have applied for a loan, the number of defaults, the number of open loan accounts, and such other details can be obtained from a credit bureau. Based on your credit history, the credit bureau will assign you a credit score. This is generally a three-digit score ranging between 300 to 900. A person who has always made their payments on time will have a higher credit score and is termed a responsible borrower or low-risk borrower. Thus, they are extended the best deals in terms of how much they can borrow as well as what interest rates they have to pay. So, before you apply for a loan, check your credit score and try to improve the score by repaying any pending debts.
3. Borrow from an online cash loan app: There are many lending channels in India from which you can get a personal loan. Conventional lenders hold the lion’s share in the market because of two main reasons, they are present in a lot of places, and they have been in the business for a long time. However, conventional lenders also have their own limitations. First, they are very highly regulated and thus mostly unable to innovate, and second, their operational costs are too high because of the widespread physical presence. The ray of sunshine is to borrow from an online cash loan app. This is a new age technology-enabled lending model which has many advantages over conventional lending institutions. Being app-based means they are present practically everywhere yet do not have the high operational costs of traditional lenders. Their application and loan processing are all computerised with minimal human intervention. All of this allows you to be able to borrow money at much lower interest rates. Moreover, being online also means that they are open for business all the time.
4. Negotiate and do comparison shopping: This is obviously the best and time-tested way to get the best deal on personal loan interest rates. You can check for offers on loans from various lenders and find out who is offering you the best possible deal. While in the case of conventional lenders you would have had to visit the branch or office of every lender on your own which obviously requires a lot of time and effort, an online cash loan app completely solves this problem. Simply install apps from reliable sources and check where you are getting a good deal. Many apps also allow pre-sales support in which you can chat to negotiate lower interest rates. Obviously, you will have to spend your time and effort on this, but it is a lot simpler, faster, and less exhausting than having to visit multiple physical locations and haggling in person. In addition to this, you can wait for the festive season when most financial institutions launch their promotional offers. You can get the best interest rate during this time.

To conclude

When borrowing, make sure that you have done all the necessary due diligence before you sign the dotted line. While checking for the interest rate is important, it is equally important to check other associated costs or charges with the loan. You must also check the quality of customer support and reviews from existing customers. How they resolve discrepancies is equally important. Do not conclude a deal unless you are sure about all these aspects. If you are borrowing from an online cash loan app, make sure to check that they have at least one physical branch. Always pay back the loan on time to avoid penalty charges and keep your credit score high. Finally, negotiate hard and do as much comparison shopping as you can!

In today’s times, buying a house without any kind of financial support is something that is largely unheard of. Most homebuyers can only afford a property purchase by applying for a housing loan and arranging for the required funds. Now, while there are various home loan plans offered by different financial institutions, all of these lenders have certain home loan eligibility criteria. Borrowers need to be aware of their home loan eligibility before applying for a loan in order to avoid their home loan application being rejected.

This is where borrowers can find a home loan eligibility calculator to be very useful. This calculator is an online tool that one can find on most lenders’ websites. It helps the user understand the loan amount that they can qualify for based on their home loan eligibility.

For those who are unfamiliar with this kind of calculator, read on to learn more about it in detail:

Steps to calculate one’s eligibility using a home loan eligibility calculator

It is very easy to make use of a home loan eligibility calculator. All that one needs to do is fill up certain information that the calculator requires, based on which the tool will display the loan amount that the user can qualify for. First, the calculator will check whether the user is salaried or self-employed, or self-employed non-individual. Next, the calculator will also check whether the user is already an existing customer with a specific financial institution. Once this is done, enter the monthly salary that is received in hand. Next, set the existing monthly instalments that are currently being paid. After this, mention the tenure (number of months) in which the home loan instalments would be repaid. Lastly, the calculator will also require the interest rate of the home loan. Based on the details provided, the home loan eligibility calculator will then display the loan amount that the user can apply for.

Why is it important to use this calculator?

A common reason why some borrowers struggle with clearing their home loans is because of a lack of planning. It is very important to be aware of the monthly instalments of a home loan beforehand. This is exactly what a home loan eligibility calculator can help with. With this calculator, a user can be aware of the loan amount that they are eligible for. This reduces the chances of getting their loan application rejected. If the loan amount displayed by the calculator is acceptable, the user can go ahead and apply for the loan. If the displayed loan amount is not satisfactory, they can then focus on improving their home loan eligibility first.

Along with a home loan eligibility calculator, one should also use a home loan EMI calculator. An EMI calculator will help in displaying the EMI payments of a specific home loan plan. Users can make changes in the details provided to find a suitable loan amount, tenure, and interest rate. This will help in avoiding any financial struggles that might come up in the future.

When it comes to short-term loans, hard money lenders usually offer more flexible terms than conventional commercial real estate loans. It can fund real estate investment and development opportunities that you cannot get elsewhere.

This article will explain the importance of hard money loan terms that make them favorable, including:

Fast Funding

The biggest benefit of a hard money loan is getting approved for funding quickly. Hard money lenders do not rely on credit scores or other traditional methods for determining whether or not to approve the loan.

Instead, the lender will determine if you qualify by looking at your current equity in the property you want to purchase and your asset value.

Remarkably, hard money loan terms allow them to make fast decisions regarding whether or not they will grant you a loan. Such a design makes it easier to get cash quickly.

Flexible Repayment Terms

Unlike banks, which have strict policies on what they will lend and how they lend, hard money lenders are much more flexible. If you need a bridge loan to cover some costs while you wait for a larger investment to pay off, they will consider it.

Hard money lenders can structure a loan to meet your particular needs. You can often even negotiate with the lender how long you can take to repay the loan.

Less Paperwork

Sometimes called “asset-based” lending, hard money loans put less emphasis on your financial situation and background compared to conventional financing options.

In the nutshell, it means that there is less paperwork involved. The design makes it an attractive option if you do not have time to deal with a mountain of documentation.

Perfect for Investors

Hard money loans are perfect for real estate investors looking to quickly acquire properties that they can flip or rent out to refinance once they improve the property.

In many cases, an investor may need some additional capital to finish up a project before they can refinance with a traditional financial institution.

No Prepayment Penalties

Hard Money Loans are short-term loans (usually from 6 months to 3 years), and there are no prepayment penalties. If you want to pay off your loan early, there is no penalty.

Your company will not need to pay any additional fees or costs because you paid off your loan early. It helps you save money by paying interest only on the amount you borrow and not on the full amount of the loan.

High Approval Rates

One of the best things about hard money lending is how straightforward the qualifications are. Unlike traditional banks, hard money lenders do not base their decisions on traditional factors like credit scores or debt-to-income ratios. Instead, they focus on the asset’s value.

In Summary

Hard Money Loans are an excellent choice for certain projects that may not qualify for a regular loan. They are available at a considerably lower interest rate, making them viable.

The benefits of hard money loans are innumerable. If you want to know why hard money applications are becoming popular, please read this article to learn about these top benefits.

Slick Cash is a direct lender with a system of direct lenders that allows it to provide instant payday loans. You need to apply online and let the search system find the best loan providers in your area. Then, you can wait for your approved loan amount to be deposited into your account within a few hours. Whether you have poor credit or no credit, Slick Cash has a loan provider to suit your needs.

Slick Cash Loan is a direct lender.

Bad credit history can make it challenging to qualify for a large bank or lender loan, but Slick Cash is different. Slick Cash can approve your loan quickly and immediately give you the funds you need. Because Slick Cash is an online lender, you can apply from any location, and the application process is easy and convenient. A direct lender with Slick Cash will show you your exact payment schedule before accepting the loan.

Slick Cash Loan App works through a network of direct lenders to ensure you get the money you need as soon as possible. You can apply for a loan from any device, and the lender will find the best loans for you based on your information. Once approved, you will receive the money you need on the same day. There are no credit checks, so you can rest assured that you will quickly receive the capital you need.

It doesn’t require a credit check.

You don’t have to have bad credit to get an instant payday loan, and they are fast and straightforward to apply online. You can approach a lender directly, but Slick Cash Loan App is the place to go if you need a loan online. It is free to apply for these loans online, and the application process is the same for both. Once approved, you will receive your money the next business day.

Instant payday loans are available from Slick Cash, an online lender. To get approved, complete a simple application form. You will be asked for basic information such as your current employment and personal information. You can have the funds deposited directly into your bank account in a few minutes. Unlike other lenders, you won’t need to worry about a credit check, and it will be approved quickly.

Applicants must be at least 18 years of age, a resident of the United States, and have a checking account. You must have a job, a bank account, and a steady source of income. Slick Cash’s instant guaranteed approval loan is easy to apply for and will give you the money you need, and you can put the money to work in your bank account.

It offers instant payday loans with bad credit.

Slick Cash Loan is a hassle-free way to get money for immediate needs. Unlike many other loan providers, they don’t check credit, and they can provide you with up to $ 5,000 in loans, while most others can only offer a certain amount. Besides, their process is designed to be fast to have the money in your bank account on the same day.

If you have bad credit but a steady income, you can get a Slick Cash Loan. It’s a simple online application process, and they work quickly and can provide you with your money within 24 hours. Moreover, if you have a low credit score, they offer low-interest loans on your second application. Whether you have bad credit or no credit history, these loans can help you solve your emergency needs.

No-credit-check loans are the best option for people with poor credit, and they offer fast funds, which allows them to stay on top of their lives. Besides, they are the best option for people with bad credit and those who need funds urgently. You can also opt for no credit check installment loans, and they offer a safer option than payday loans and short-term loans. If you have a low credit score, you don’t need to worry – there are several no-fee loans available online.

Conclusion

Slick Cash Loan also offers a bad credit instant loan. Its site features information about the lender, and you’ll have the money in your bank account the next business day. Bad credit loans are an excellent solution to temporary cash problems, and the site is secure and safe to use. And the service works round the clock. The company’s representatives are available to help you get the money you need.

Applying for a home loan is one of the most common ways of getting financial support to buy a house. There are many lenders offering home loans, but many people have second thoughts given their high interest rates. However, you should know that it is not always necessary to take a loan plan that has a high interest rate. It is possible to bring down the home loan interest rate that a lender is offering through many ways.

4 effective ways in which the interest rate of a home loan can be brought down:

• Make a higher down payment for the property

A home loan does not cover 100% of the property price. You would have to cover about 20% to 30% of the principal loan amount, which is called the down payment. Now, many borrowers try to pay the minimum down payment so that their loan could cover the maximum expenses. However, it is advisable to pay a higher down payment, as this would mean borrowing a smaller loan amount. Repaying a smaller amount would not only be easier but also faster and would save interest on a limited tenure.

• Consider different loan plans

Not all loan plans will have the same interest rates. This is why it is so important to consider numerous plans before settling for one. This way you can analyse different plans and understand which one is most suitable. Always use a home loan EMI calculator to know about the monthly instalments of the loan. Even a slight difference in the interest rate can make a significant difference in the overall cost of the loan. Also, do keep in mind to focus on other aspects that increase the total cost of the loan such as the processing fees.

• Keep a good credit record

It is very important to have a good CIBIL record. This is not just for a home loan, but for any loan. Your credit score is always going to be an important factor in the lender’s evaluation process. Not just this, maintaining a good credit record can get lenders to offer a lower housing loan interest rate. This is because applicants with a good record (above 750) are a safer bet for lenders to rely on for timely repayments.

• Clear the loan in a short tenure

This might come across as surprising considering most borrowers prefer going for a long tenure as this makes the EMI payments easier. However, repaying the loan in a long tenure means that the interest is adding up with each instalment. Therefore, repaying the home loan in a short tenure and cutting down the number of monthly instalments will help in cutting down on the home loan rate.

Also, you can avail tax benefits of up to Rs 2 lakh on the interest paid under Section 24(b) of the Income Tax Act of 1961. So, keep these tips in mind to save money on the housing loan interest.